Mortgage Trusted AdviceOur blog provides timely and helpful information about buying a home, money-saving tips, home improvement projects and much more!https://www.washtrust.com/Wash-Trust-Mortgage/BlogWashington Trust Offers Assistance to Homebuyers Through FHLBank Boston Programhttps://www.washtrust.com/Wash-Trust-Mortgage/Blog/PostId/187/fhlbank-boston-programBuying a HomeThu, 21 Mar 2019 14:52:44 GMT<p><strong>March 21, 2019</strong></p>
<p><strong><img alt="" src="/Portals/0/Uploads/Images/FHLB%20Pic.jpg" class="imageright" style="width: 400px; height: 267px;" />Westerly, RI</strong> - The Washington Trust Company has been selected to participate in the Federal Home Loan Bank of Boston’s Equity Builder Program, which assists local homebuyers with down-payment and closing costs as well as homebuyer counseling and rehabilitation assistance. </p>
<p>The $3.6 million program provides grants to financial institutions to assist households at or below 80 percent of the area median income. Borrowers are eligible to receive up to $15,000 in assistance on a first come first serve basis. Buyers must also complete a homebuyer counseling program.</p>
<p>“Homeownership is not easily attainable for many households, so we are pleased to offer this assistance to help individuals and families purchase a home,” said Mary Noons, Washington Trust Executive Vice President &amp; Chief Retail Lending Officer. “Owning a home helps build wealth and create financial stability, and programs that assist homebuyers can be effective in adding to the vibrancy of our communities.”</p>
<p>Washington Trust is eligible to receive up to $150,000 in 2019 through the Equity Builder Program depending on availability of funds. Since 2003, the Equity Builder Program has awarded more than $38.8 million in EBP funds assisting 3,512 income-eligible households to purchase a home. </p>
<p>To learn more about applying for assistance, please contact Washington Trust at (800) 475-2265 or find a mortgage specialist in your area by visiting: https://www.washtrust.com/Personal-Banking/Mortgages/Mortgage-Specialists </p>
<p><strong>ABOUT WASHINGTON TRUST</strong><br />
Founded in 1800, Washington Trust is the oldest community bank in the nation and one of the Northeast’s premier financial services companies. Washington Trust offers a full range of financial services, including commercial banking, mortgage banking, personal banking and wealth management and trust services through its offices located in Rhode Island, Connecticut and Massachusetts. The Washington Trust Company is a subsidiary of Washington Trust Bancorp, Inc., (NASDAQ: WASH). Additional information on Washington Trust and its subsidiaries can be found at https://www.washtrust.com/.</p>
<p><strong>ABOUT FHLBANK BOSTON</strong><br />
The Federal Home Loan Bank of Boston is a cooperatively owned wholesale bank for housing finance in the six New England states. Its mission is to provide highly reliable wholesale funding and liquidity to its member financial institutions in New England. The Bank also develops and delivers competitively priced financial products, services, and expertise that support housing finance, community development, and economic growth, including programs targeted to lower-income households.</p>187Reverse Mortgage FAQshttps://www.washtrust.com/Wash-Trust-Mortgage/Blog/PostId/60/reverse-mortgages-101TipsTue, 26 Jun 2018 13:07:46 GMT<script src="https://fast.wistia.com/embed/medias/piqmtvwpej.jsonp" async></script>
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<p><em>As seen on The Rhode Show</em></p>
<p>Have you heard the term “reverse mortgage” but find yourself unsure of what a reverse mortgage really is? Here is a quick primer on the ins and outs of reverse mortgages and why they can be a good option to help some seniors through retirement.</p>
<h1>Reverse Mortgages 101</h1>
<h2>What is a Reverse Mortgage?</h2>
<p>A reverse mortgage is a loan available to homeowners who are 62 years or older, allowing them to convert part of the equity in their home into cash. </p>
<p>One of the major differences between a reverse mortgage and a traditional loan is that a reverse mortgage does not require a monthly payment. To qualify for a traditional mortgage or a home equity line of credit, you must have sufficient income and acceptable credit to be approved for the loan. In a reverse mortgage, your eligibility is based upon your age. The loan amount you qualify for must be sufficient to satisfy any existing loans secured against your home.</p>
<h2>Who gets a Reverse Mortgage?</h2>
<p>Seniors age 62+ who own their own home and need access to additional monthly income, or want to free up money to travel or enjoy their retirement. </p>
<h2>Why would someone get a reverse mortgage?</h2>
<p>Nearly 80 percent of those age 62 and older own their own home<sup>1</sup> and may have the option to use that home to help get them through retirement. </p>
<ul>
<li>Their home is their biggest asset - they are living in their piggy bank.&nbsp;</li>
<li>A reverse mortgage can help if they’re living on a tight budget, have medical expenses, or want to travel or just free up money for day to day expenses.&nbsp;</li>
<li>They don’t want to sell the house and downsize to gain retirement money because it’s their home and they want to stay there.
</li>
</ul>
<h2>How does it work?</h2>
<p>The first step in taking on a reverse mortgage is identifying your true monthly expenses with a comprehensive budget. Then, together with a reverse mortgage specialist, you devise the best options for you to use your reverse mortgage proceeds and go through the entire process in detail to ensure that a reverse mortgage is indeed the right fit for your circumstances.</p>
<p>To learn more about revere mortgages, including FAQ’s for seniors and children of seniors, contact <a href="https://6419465146.mortgage-application.net/Default.aspx">Brian Mahone</a>, Vice President, Washington Trust Mortgage Company at (774) 218-0582 or <a href="mailto:blmahone@washtrustmortgage.com">blmahone@washtrustmortgage.com</a> or visit: <a href="https://www.washtrust.com/Wash-Trust-Mortgage/Common-Misconceptions-About-Reverse-Mortgages">https://www.washtrust.com/Wash-Trust-Mortgage/Common-Misconceptions-About-Reverse-Mortgages</a></p>
<p><span class="smalltext">Source: 1: US Census Bureau Housing Vacancies and Homeownership (CPS/HVS)</span></p>607 Things To Remember When Hiring A Contractorhttps://www.washtrust.com/Wash-Trust-Mortgage/Blog/PostId/59/hiring-a-contractorTipsFri, 22 Jun 2018 19:43:24 GMT<p><img alt="" src="/Portals/0/Uploads/Images/blog_7_tips_contractor.jpg" class="imageright" />A home improvement loan is a great way to help pay for big or small upgrades and remodels to your home. Washington Trust’s Home Improvement Express Loan is perfect for financing roof or window repairs, a new patio or driveway, a new furnace, or any other home improvement on your list. But whether you're planning an addition for a growing family or simply getting new storm windows, finding a competent and reliable contractor is the first step to a successful and satisfying home improvement project.</p>
<p>Your home may be your most valuable financial asset. That's why it's important to be cautious when you hire someone to work on it. Home improvement and repair and maintenance contractors often advertise in newspapers, the Yellow Pages, and on the radio and TV. However, don't consider an ad an indication of the quality of a contractor's work. Your best bet is a reality check from those in the know: friends, neighbors, or co-workers who have had improvement work done. Get written estimates from several firms. Ask for explanations for price variations. Don't automatically choose the lowest bidder.</p>
<p>Interview each contractor you're considering. Here are some questions to ask:</p>
<ul>
<li><strong>How long have you been in business?</strong> Look for a well-established company and check it out with consumer protection officials. They can tell you if there are unresolved consumer complaints on file. One caveat: If there is no record of complaints against a particular contractor that doesn't necessarily mean no previous consumer problems. It may be that problems exist, but have not yet been reported, or that the contractor is doing business under several different names.</li>
<li><strong>Are you licensed and registered with the state?</strong> While most states license electrical and plumbing contractors, only 36 states have some type of licensing and registration statutes affecting contractors, remodelers, and/or specialty contractors. The licensing can range from simple registration to a detailed qualification process. Also, the licensing requirements in one locality may be different from the requirements in the rest of the state. Check with your local building department or consumer protection agency to find out about licensing requirements in your area. If your state has licensing laws, ask to see the contractor's license. Make sure it's current.</li>
<li><strong>How many projects like mine have you completed in the last year?</strong> Ask for a list. This will help you determine how familiar the contractor is with your type of project.</li>
<li><strong>Will my project require a permit? </strong>Most states and localities require permits for building projects, even for simple jobs like decks. A competent contractor will get all the necessary permits before starting work on your project. Be suspicious if the contractor asks you to get the permit(s). It could mean that the contractor is not licensed or registered, as required by your state or locality.</li>
<li><strong>May I have a list of references?</strong> The contractor should be able to give you the names, addresses, and phone numbers of at least three clients who have projects similar to yours. Ask each how long ago the project was completed and if you can see it. Also, tell the contractor that you'd like to visit jobs in progress.</li>
<li><strong>Will you be using subcontractors on this project? </strong>If yes, ask to meet them, and make sure they have current insurance coverage and licenses, if required. Also ask them if they were paid on time by this contractor. A "mechanic's lien" could be placed on your home if your contractor fails to pay the subcontractors and suppliers on your project. That means the subcontractors and suppliers could go to court to force you to sell your home to satisfy their unpaid bills from your project. Protect yourself by asking the contractor, and every subcontractor and supplier, for a lien release or lien waiver.</li>
<li><strong>What types of insurance do you carry? </strong>Contractors should have personal liability, worker's compensation, and property damage coverage. Ask for copies of insurance certificates, and make sure they're current. Avoid doing business with contractors who don't carry the appropriate insurance. Otherwise, you'll be held liable for any injuries and damages that occur during the project.</li>
<p><a href="/Personal-Banking/Loans/Home-Improvement-Express-Loan">Learn more about Washington Trust's Home Improvement Express Loan here &gt;&gt;&gt;</a></p>
</ul>596 Items for Your New Home’s To Do Listhttps://www.washtrust.com/Wash-Trust-Mortgage/Blog/PostId/58/new-home-to-do-listTipsWed, 13 Jun 2018 18:33:59 GMT<p><img alt="" src="/Portals/0/Uploads/Images/blog_couple_home_to-do.jpg" class="imageright" />Now that you’re settling in to your new home, there are some important things you need to consider. (The article is also available in Spanish below)</p>
<ol>
<li><strong>Create a budget.</strong><br />
The key to a good budget is including as much information as you can, so that you can adequately prepare and plan. It's important to keep accurate records of your spending so you can spot places to save money and know how much you can reasonably spend. The American Bankers Association’s budgeting worksheet (also available in Spanish) will help you document and categorize your expenses.</li>
<li><strong>Protect your property.</strong><br />
Whether you’re a homeowner or a renter, you need insurance to protect your belongings. Check with your local insurance agent, you might be able to get a discount if you have things like dead bolt locks, an alarm system, or smoke detectors, or if you already have a policy with that company, like car insurance. Also, find out if you’re in a flood zone. If you’re concerned about flooding, you will need to purchase a separate flood insurance policy. Learn more at floodsmart.gov. </li>
<li><strong>Protect your safety.</strong><br />
Make sure all of the locks on your doors and windows work properly. If it makes you more comfortable, look into having an alarm system installed. Also, check your fire and carbon monoxide alarms once a month to be sure they’re working. If you have a dryer, clean the lint from the entire system, from the dryer to the exterior vent cap. Lint is extremely flammable and poses a fire risk.</li>
<li><strong>Take your tax deductions.</strong><br />
Be sure you know all the tax deductions associated with your move and new home. If you use a portion of your home for business purposes or moved for a new job, you may be able to take deductions. Homeowners can deduct mortgage interest, property taxes and loans for home improvements.</li>
<li><strong>Make your house – or apartment – your home.</strong><br />
Decorating your space will make it more comfortable and personal. If you’re a tenant, check with your landlord before making major changes like painting the walls or changing the appliances. Renters should take photos of the rental space before moving in to document the existing condition and insist on a final walk-through with the landlord. If you own your home, be smart about where you invest your money on improvements to ensure you’re building equity in your home. For example, updates in the kitchen and bathroom usually provide the best return on investment.</li>
<li><strong>Save up for a rainy day.</strong><br />
Although life may be sunny now, it’s a good idea to create a rainy day fund. The fund should have at least three to six months of living expenses in case you or someone in your household loses a job or becomes ill and unable to work. </li>
</ol>
<h2>6 elementos para la lista de tareas pendientes de su nueva vivienda</h2>
<p>Ahora que se está adaptando a su nuevo hogar, hay algunas cosas importantes que debe
considerar. </p>
<ol>
<li><strong>Cree un presupuesto.</strong><br />
La clave para un buen presupuesto es incluir la mayor cantidad de información posible,
de manera que pueda prepararse adecuadamente y planificar. Es importante mantener
registros precisos de sus gastos para que pueda determinar los lugares a fin de ahorrar
dinero y saber cuánto puede gastar razonablemente. La hoja de trabajo de presupuesto
de la ABA (también disponible en español) le ayudará a documentar y clasificar sus
gastos.</li>
<li><strong>Proteja su propiedad.</strong><br />
Si usted es un propietario de vivienda o inquilino, necesitará tener un seguro para
proteger sus pertenencias. Consulte con su agente de seguros local, ya que puede
obtener un descuento si usted tiene cosas como cerraduras con pestillo, un sistema de
alarma, o detectores de humo, o si ya tiene una póliza con esa compañía, tal como un
seguro de automóvil. También, averigüe si se encuentra en una zona de inundación. Si
está preocupado por las inundaciones, tendrá que comprar una póliza de seguro contra
inundación por separado. Obtenga más información en floodsmart.gov.</li>
<li><strong>Proteja su seguridad.</strong><br />
Asegúrese de que todas las cerraduras de sus puertas y ventanas funcionan
correctamente. Si se le hace más cómodo, trate de instalar un sistema de alarma.
Además, verifique las alarmas contra incendio y monóxido de carbono una vez al mes
para asegurarse de que están funcionando. Si tiene una secadora, limpie las pelusas de
todo el sistema, desde la secadora hasta la tapa de ventilación exterior. La pelusa es
muy inflamable y presenta un riesgo de incendio.</li>
<li><strong>Tome su deducción de impuestos.</strong><br />
Asegúrese de conocer todas las deducciones de impuestos asociadas a su mudanza y
su nuevo hogar. Si utiliza una parte de su hogar para operar una empresa o se trasladó
a un nuevo trabajo, es posible que pueda tomar las deducciones. Los propietarios de
viviendas pueden deducir los intereses de las hipotecas, los impuestos a la propiedad y
los préstamos para mejoras en el hogar.</li>
<li><strong>Haga que su casa o apartamento sea su hogar.</strong><br />
Al decorar su espacio hará que sea más cómodo y personal. Si usted es un inquilino,
verifique con su arrendador antes de realizar cambios importantes como pintar las
paredes o cambiar los artefactos. Los inquilinos deben tomar fotografías del espacio en
alquiler antes de mudarse para documentar la condición existente e insistir en un último
paseo con el arrendador. Si usted es el propietario de la vivienda, sea inteligente acerca
de dónde invierte su dinero en mejoras para asegurarse de que está aumentando el
valor neto de su vivienda. Por ejemplo, las mejoras en la cocina y los baños por lo
general ofrecen la mejor rentabilidad de la inversión.</li>
<li><strong>Ahorre para cuando tenga un día lluvioso.</strong><br />
Aunque la vida puede ser soleada ahora, es una buena idea crear un fondo para los
días lluviosos. El fondo debe tener por lo menos tres a seis meses de gastos de
subsistencia en caso de que usted o alguien de su familia pierda su empleo o se
enferme y no pueda trabajar.</li>
</ol>587 Pointers to Help Seniors Live at Home Longerhttps://www.washtrust.com/Wash-Trust-Mortgage/Blog/PostId/57/help-seniors-live-at-home-longerTipsTue, 12 Jun 2018 13:04:35 GMT<p><img alt="" src="/Portals/0/Uploads/Images/blog_7_pointers_seniors.jpg" class="imageright" />The vast majority of older Americans want to remain in their homes as they grow older, also known as aging in place. Washington Trust is offering the following tips for those considering this option:</p>
<p><strong>Take a hard look at your finances. </strong>Arrange a meeting with a trusted family member or friend and a banker. It’s critical to understand your financial resources, how long they’ll last and what housing options are the most cost effective for you. Be sure to consider all costs associated with aging in place, including:</p>
<ul>
<li>Home modifications</li>
<li>Transportation to medical appointments, shopping and other errands</li>
<li>In home caregiver for house upkeep and medical purposes</li>
</ul>
<p><strong>Consider a reverse mortgage.</strong> Though not for everyone, a reverse mortgage loan can provide monthly cash payments based on your home’s equity.</p>
<ul>
<li>Learn more about Washington Trust’s reverse mortgage options.</li>
<li>For further consumer information on reverse mortgages, visit aba.com/consumers.</li>
</ul>
<p><strong>Assess your home and determine what modifications are necessary. </strong>While staying in your home is preferable for many, there are often design changes that must be made to ensure it’s also safe and comfortable.</p>
<ul>
<li>Make sure there is at least one step-free entrance to your home.</li>
<li>Update lighting inside and outside of the house so that all walkways and stairs are well lit. Clear pathways throughout house and firmly secure all carpets to the floor to prevent tripping.</li>
<li>If a bedroom and bathroom does not or cannot exist on the first floor, consider installing an elevator or chairlift. At a minimum, make sure you have handrails on both sides of your stairs.</li>
<li>Install grab bars in the bathtub, shower, or near the toilet.</li>
</ul>
<p><strong>Make security a priority. </strong>Older Americans are often targets for scams and other criminal behavior. Be cautious about who you allow in your home and disclose sensitive information to.</p>
<ul>
<li>Install up to date and easy to use locks. Make sure your front door has a peep hole or a security monitor so you can see who is outside.</li>
<li>Consult someone you trust when hiring a contractor, financial advisor, etc.</li>
</ul>
<p><strong>Look into community resources.</strong> If mobility is limited, look in to services offered in your area. Many communities have established non-profit programs that offer transportation and food delivery to assist older Americans at a reasonable cost.</p>
<p><strong>Be prepared for possible emergencies.</strong></p>
<ul>
<li>Keep a list of all emergency contacts on your refrigerator or by a phone.</li>
<li>Consider a Personal Emergency Response System. Transmitters can be worn as a bracelet or around your neck and require the simple push of a button to send a signal to a call center.</li>
<li>Have your address number visible from the street so emergency responders can easily identify your home.</li>
</ul>
<p><strong>Reevaluate every six months to make sure all needs are being met. </strong> As you age, your needs inevitably change. Take time twice a year, or as needed, to sit down with your trusted family or friend and make sure your current living situation is still the right one.</p>576 Tips for Saving for Your Down Paymenthttps://www.washtrust.com/Wash-Trust-Mortgage/Blog/PostId/56/6-tips-for-saving-for-your-down-paymentBuying a HomeThu, 07 Jun 2018 14:47:51 GMT<p><img alt="" src="/Portals/0/Uploads/Images/blog_downpayment_tips.jpg" class="imageright" />Before you can make the transition from renting your home to owning your home, you will need to have a substantial down payment, typically 5 to 20 percent of the home’s value. (The article is also available in Spanish below)</p>
<ol>
<li><strong>Develop a budget &amp; timeline. </strong>Start by determining how much you’ll need for a down payment. Create a budget and calculate how much you can realistically save each month – that will help you gauge when you’ll be ready to transition from renter to homeowner.</li>
<li><strong>Establish a separate savings account.</strong> Set up a separate savings account exclusively for your down payment and make your monthly contributions automatic. By keeping this money separate, you’ll be less likely to tap into it when you’re tight on cash.</li>
<li><strong>Shop around to reduce major monthly expenses. </strong>It’s a good idea to check rates for your car insurance, renter’s insurance, health insurance, cable, Internet or cell phone plan. There may be deals or promotions available that allow you to save hundreds of dollars by adjusting your contracts.</li>
<li><strong>Monitor your spending. </strong>With online banking, keeping an eye on your spending is easier than ever. Track where most of your discretionary income is going. Identify areas where you could cut back (e.g. nice meals out, vacations, etc.) and instead put that money into savings.</li>
<li><strong>Look into state and local home-buying programs. </strong>Many states, counties and local governments operate programs for first-time homebuyers. Some programs offer housing discounts, while others provide down payment loans or grants.</li>
<li><strong>Celebrate savings milestones. </strong>Saving enough for a down payment can be daunting. To avoid getting discouraged, break it up into smaller goals and reward yourself when you reach each one. If you need to save $30,000 total, consider treating yourself to a nice meal every $5,000 saved. This will help you stay motivated throughout the process.</li>
</ol>
<hr />
<h3>6 consejos para ahorrar para el pago inicial</h3>
<p>Antes de que pueda hacer la transición de alquilar su casa a ser dueño de su vivienda, tendrá que tener un pago inicial considerable, por lo general entre el 5% y el 20%% del valor de la vivienda.</p>
<ol>
<li><strong>Elabore un presupuesto y un cronograma. </strong>Empiece al determinar cuánto necesitará para el pago inicial. Cree un presupuesto y calcule cuánto puede ahorrar cada mes de manera realista – esto le ayudará a determinar cuándo estará listo para la transición de inquilino a propietario.</li>
<li><strong>Abra una cuenta de ahorros por separado. </strong>Establezca una cuenta de ahorros por separado exclusivamente para su pago inicial y realice sus contribuciones mensuales automáticas. Al mantener este dinero aparte, será menos probable que lo utilice cuando necesite efectivo.</li>
<li><strong>Averigüe sobre los precios para reducir los gastos mensuales importantes. </strong>Es una buena idea verificar las tarifas del seguro de su automóvil, el seguro para inquilinos, seguro de salud, cable, Internet o plan de teléfono celular. Es posible que haya ofertas o promociones disponibles que le permitan ahorrar cientos de dólares al ajustar sus contratos.</li>
<li><strong>Lleve un control de sus gastos. </strong>Con la banca en línea, llevar un control de sus gastos es más fácil que nunca antes. Determine hacia dónde se va la mayoría de sus ingresos discrecionales. Identifique las áreas donde podría hacer recortes (por ejemplo, comidas en restaurantes, vacaciones, etc.) y en su lugar, ponga ese dinero en sus ahorros.</li>
<li><strong>Busque programas estatales y locales sobre la compra de viviendas.</strong> Muchos estados, condados y gobiernos locales operan programas para los compradores de vivienda por primera vez. Algunos programas ofrecen descuentos para viviendas, mientras que otros ofrecen préstamos o subvenciones para el pago inicial.</li>
<li><strong>Celebre los hitos en sus ahorros. </strong>Ahorrar lo suficiente para el pago inicial puede ser abrumador. Para evitar desanimarse, divídala en pequeñas metas y recompénsese cuando logre cada una. Si necesita ahorrar $30,000 en total, considere recompensarse con una buena comida cada $5,000 ahorrados. Esto le ayudará a mantenerse motivado a lo largo de todo el proceso.</li>
</ol>56Housing 101: Terms to Know Before Buying or Rentinghttps://www.washtrust.com/Wash-Trust-Mortgage/Blog/PostId/46/housing-101-terms-to-know-before-buying-or-rentingBuying a Home,TipsWed, 08 Nov 2017 14:55:17 GMT<p><img alt="" class="imageright" src="/Portals/0/Uploads/Images/blog_housing_terms.jpg" />Whether you’re preparing to rent or buy, we encourage you to be familiar with the following housing terms. (The article also available in Spanish below)</p>
<h3>Before Buying:</h3>
<p><strong>APR:</strong> Short for annual percentage rate, APR is how much your loan will cost over the course of a year. This figure is almost always higher than the interest rate, because it takes into account the interest charged as well as fees or additional costs associated with the loan. Since all lenders use the same formula, it can be a more effective way of comparing mortgages rather than just the interest rate.</p>
<p><strong>Closing costs/settlement fees: </strong>The costs, in addition to the price of the property, that buyers and sellers are charged to complete a real estate transaction. Costs include loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed-recording fees and credit report charges.</p>
<p><strong>Escrow:</strong> An account held by a neutral third party (called an escrow agent) who works for both the lender and the borrower. Escrow accounts are usually required by lenders to cover property taxes and mortgage insurance. After an initial deposit, borrowers pay into the escrow monthly – usually as part of the mortgage payment.</p>
<p><strong>Good Faith Estimate (GFE): </strong>An accurate estimate of fees associated with a loan provided to the customer by a mortgage lender or broker. A GFE is required by law under the Real Estate Settlement Procedures Act (RESPA). The estimate must be provided within 3 business days of applying for a loan.</p>
<p><strong>Mortgage broker: </strong>An individual or company who connects borrowers and lenders for the purpose of facilitating a mortgage loan. Unlike a mortgage lender, a broker does not make the loan or service the mortgage. A mortgage broker may represent various lenders or may offer loans from one single source.</p>
<p><strong>Points:</strong> Borrowers can pay a lender points to reduce the interest rate on the loan, resulting in a lower monthly payment. The cost of one point is equal to 1 percent of the loan amount. Depending on the borrower, each point lowers your interest rate by one-eighth to one one-quarter of a percent.</p>
<h3>Before Renting:</h3>
<p><strong>Lease: </strong>A legal document detailing the terms under which the lessee (the renter) agrees to rent property from the lessor (the property owner). A lease guarantees use of an asset and guarantees regular payments from the lessee for a specified number of months or years.</p>
<p><strong>Notice to vacate: </strong>Notification from the landlord to the tenant ordering the tenant of vacate the property. In most cases, the notification is given because the tenant either broke one of the terms of the lease or is not following through with payment of rent. The tenant is typically given 30 days to vacate the premises. Similarly, a notice to intend to vacate may be required under the lease for the tenant to notify the landlord before vacating the property.</p>
<p><strong>Rental application:</strong> Filled out by a prospective tenant, which typically authorizes the landlord to conduct a credit check to determine the suitably of the individual. Often, there can be a non-refundable fee associated with the rental application.</p>
<p><strong>Security deposit:</strong> Funds, in addition to rent, that a landlord requires a tenant to pay to be kept separately in a fund for use should the tenant cause damage to the premises or otherwise violate terms of the lease.</p>
<hr />
<h2>Fundamentos básicos para las viviendas: Términos a saber antes de comprar o alquilar</h2>
<p>Bien sea que se está preparando para alquilar o comprar, Washington Trust le recomienda familiarizarse con los siguientes términos sobre las viviendas:</p>
<h3>Antes de comprar:</h3>
<p><strong>APR:</strong> La abreviatura para tasa porcentual anual (APR, por sus siglas en inglés), se refiere a cuánto costará su préstamo en el transcurso de un año. Esta cifra es casi siempre mayor que la tasa de interés, porque tiene en cuenta los intereses cargados, así como las tarifas o costos adicionales asociados con el préstamo. Dado que todos los prestamistas usan la misma fórmula, puede ser una manera más eficaz de comparar las hipotecas en lugar de solo la tasa de interés.</p>
<p><strong>Costos de cierre/honorarios de cierre: </strong>Los costos, además del precio de la propiedad, que los compradores y los vendedores deben pagar para completar una transacción de bienes raíces. Los costos incluyen las comisiones por el otorgamiento de préstamos, puntos de descuento, comisiones de tasación, búsquedas de título, seguro de título, tasación, impuestos, cargos por el registro de escrituras y cargos por los informes crediticios.</p>
<p><strong>Depósito en garantía:</strong> Una cuenta mantenida por un tercero neutral (denominado agente de custodia) que funciona tanto para el prestamista como para el prestatario. Las cuentas de depósito en garantía se requieren generalmente por los prestamistas para cubrir los impuestos a la propiedad y el seguro hipotecario. Después de un depósito inicial, los prestatarios pagan mensualmente a la cuenta de depósito en garantía, por lo general, como parte del pago de la hipoteca.</p>
<p><strong>Estimación de buena fe (GFE): </strong>Una estimación precisa de los cargos relacionados con un préstamo que se ofrece al cliente a través de un prestamista o agente hipotecario. La GFE es obligatoria por la ley en virtud de la Ley de Procedimientos de Liquidación de Bienes Raíces (RESPA, por sus siglas en inglés). La estimación se debe proporcionar dentro de los 3 días hábiles siguientes a la solicitud de un préstamo.</p>
<p><strong>Agente hipotecario:</strong> Una persona o empresa que conecta a los prestatarios con los prestamistas con el propósito de facilitar un préstamo hipotecario. A diferencia de un prestamista hipotecario, un agente hipotecario no otorga el préstamo ni mantiene la hipoteca. Un agente hipotecario puede representar a varios prestamistas o puede ofrecer préstamos de una sola fuente.</p>
<p><strong>Puntos:</strong> Los prestatarios pueden pagar puntos a un prestamista para reducir la tasa de interés del préstamo, lo cual resulta en un menor pago mensual. El costo de un punto es igual a 1% del monto del préstamo. Dependiendo del prestatario, cada punto reduce su tasa de interés por un octavo a un cuarto de un por ciento.</p>
<h3>Antes de alquilar</h3>
<p><strong>Contrato de arrendamiento:</strong> Un documento legal que detalla las condiciones en que el arrendatario (inquilino) se compromete a alquilar la propiedad del arrendador (el dueño de la propiedad). Un contrato de arrendamiento garantiza el uso de un activo y asegura los pagos regulares del arrendatario durante un número determinado de meses o años.</p>
<p><strong>Aviso para desalojar:</strong> Notificación del arrendador al inquilino para ordenar el desalojo de la propiedad por parte del inquilino. En la mayoría de los casos, el aviso se proporciona porque el inquilino incumplió uno de los términos del contrato de arrendamiento o no está realizando el pago del alquiler. Por lo general, se proporciona al inquilino un periodo de 30 días para desalojar la propiedad. Del mismo modo, un aviso de intención de desalojar se puede requerir en virtud del contrato de arrendamiento para el arrendatario a fin de notificar al propietario antes de desalojar la propiedad.</p>
<p><strong>Solicitud de alquiler:</strong> La llena un inquilino potencial, y por lo general autoriza al propietario a realizar una comprobación de crédito para determinar la idoneidad de la persona. Con frecuencia, puede haber una tarifa no reembolsable relacionada a la solicitud de alquiler.</p>
<p><strong>Depósito de garantía:</strong> Los fondos, además del alquiler, que el dueño requiere que pague un inquilino, los cuales se mantendrán por separado en un fondo para ser utilizados en caso de que el inquilino cause daños a las instalaciones o viole los términos del contrato de arrendamiento.</p>465 Important Questions When Choosing Your First Homehttps://www.washtrust.com/Wash-Trust-Mortgage/Blog/PostId/45/5-important-questions-when-choosing-your-first-homeBuying a Home,GeneralWed, 08 Nov 2017 14:53:15 GMT<p><img alt="" class="imageright" src="/Portals/0/Uploads/Images/blog_5_questions_first_home.jpg" />Moving into your own place can be exciting and frightening at the same time. Washington Trust suggests considering the following questions when choosing your own home.</p>
<ol>
<li><strong>How much money do you have saved up?</strong><br />
Start with an evaluation of your financial health. Figure out how much money you have for a down payment or deposit on a rental. Down payments are typically 5 to 20 percent of the price of the home. Security deposits on rentals are usually about one month of rent and more if you have a pet. But be sure to keep enough in savings for an emergency fund. It’s a good idea to have three to six months of living expenses to cover unexpected costs.</li>
<li><strong>How much debt do you have?</strong><br />
Consider all of your current and expected financial obligations like your car payment and insurance, credit card debt and student loans. Make sure you will be able to make all the payments in addition to the cost of your new home. Aim to keep total rent or mortgage payments plus utilities to less than 25 to 30 percent of your gross monthly income. Recent regulatory changes limit debt to income (DTI) ratio on most loans to 43 percent.</li>
<li><strong>What is your credit score?</strong><br />
A high credit score indicates strong creditworthiness. Both renters and homebuyers can expect to have their credit history examined. A low credit score can keep you from qualifying for the rental you want or a low interest rate on your mortgage loan. If your credit score is low, you may want to delay moving into a new home and take steps to raise your score. For tips on improving your credit score, visit aba.com/consumers.</li>
<li><strong>Have you factored in all the costs?</strong><br />
Create a hypothetical budget for your new home. Find the average cost of utilities in your area, factor in gas, electricity, water and cable. Find out if you will have to pay for parking or trash pickup. Consider the cost of yard maintenance and other basic maintenance costs like replacing the air filter every three months. If you are planning to buy a home, factor in real estate taxes, mortgage insurance and possibly a home owner association fee. Renters should consider the cost of rental insurance.</li>
<li><strong>How long will you stay?</strong><br />
Generally, the longer you plan to live someplace, the more it makes sense to buy. Over time, you can build equity in your home. On the other hand, renters have greater flexibility to move and fewer maintenance costs. Carefully consider your current life and work situation and think about how long you want to stay in your new home.</li>
</ol>
<h3>5 Preguntas importantes al elegir su primera casa</h3>
<p>Mudarse a su propio lugar puede ser emocionante y aterrador al mismo tiempo. Washington Trtust sugiere considerar las siguientes preguntas al elegir su vivienda.</p>
<ol>
<li>¿Cuánto dinero ha ahorrado? <br />
Comience con una evaluación de su salud financiera. Determine cuánto dinero tiene para el pago inicial o el depósito del alquiler. Los pagos iniciales por lo general son de 5% a 20% del precio de la vivienda. Los depósitos de garantía para los alquileres son por lo general alrededor de un mes de alquiler y más si tiene una mascota. No obstante, asegúrese de tener suficientes ahorros para un fondo de emergencia. Es una buena idea tener tres a seis meses de gastos de subsistencia para cubrir los costos inesperados.</li>
<li>¿Cuánta deuda tiene?<br />
Considere todas sus obligaciones financieras actuales y esperadas, tales como el pago de su auto y el seguro, la deuda de tarjetas de crédito y los préstamos estudiantiles. Asegúrese de que puede realizar todos los pagos además del costo de su nueva vivienda. Trate de mantener los pagos totales de alquiler o hipoteca más los gastos públicos a menos del 25% al 30% de sus ingresos brutos mensuales. Los cambios recientes de la regulación limitan la relación deuda-ingresos (DTI) de la mayoría de los préstamos a un 43%.</li>
<li>¿Cuál es su calificación crediticia? <br />
Una calificación crediticia alta indica una buena solvencia crediticia. Los inquilinos y los compradores pueden esperar que les revisen su historial crediticio. Una calificación crediticia baja puede impedir que califique para el alquiler que desea o una tasa de interés baja para su préstamo hipotecario. Si su calificación crediticia es baja, es posible que desee retrasar la mudanza a una casa nueva y tomar las medidas para aumentar su calificación. Para obtener sugerencias sobre cómo mejorar su calificación crediticia, visite aba.com/consumers.</li>
<li>¿Ha considerado todos los costos? <br />
Cree un presupuesto hipotético para su nuevo hogar. Encuentre el costo promedio de los servicios públicos en su área, para considerar los precios del gas, electricidad, agua y cable. Averigüe si usted tendrá que pagar por el estacionamiento o la recolección de basura. Considere el costo del mantenimiento del patio y otros costos de mantenimiento básico, tal como la sustitución del filtro de aire cada tres meses. Si está pensando en comprar una casa, determine los impuestos de bienes raíces, el seguro hipotecario y posiblemente, un cargo de asociación de propietarios de viviendas. Los inquilinos deben considerar el costo del seguro de alquiler.</li>
<li>¿Cuánto tiempo estará en la vivienda? <br />
En general, mientras más tiempo tenga planificado vivir en algún lugar, tendrá mayor sentido comprar la propiedad. Con el tiempo, usted puede aumentar el valor neto de su vivienda. Por otro lado, los inquilinos tienen mayor flexibilidad para mudarse y menos 2 costos de mantenimiento. Considere cuidadosamente su situación de vida y trabajo actuales y piense en la cantidad de tiempo que desea permanecer en su nuevo hogar.</li>
</ol>45 Tips on Planning a Home Renovation Projecthttps://www.washtrust.com/Wash-Trust-Mortgage/Blog/PostId/44/tips-on-planning-a-home-renovation-projectTipsThu, 26 Oct 2017 18:00:50 GMT<p><img alt="" class="imageright" src="/Portals/0/Uploads/Images/bigstock-Home-Renovation--Old-Flat-Dur-154871333.jpg" />This is the time when many homeowners consider starting new projects, updates or renovations to transform their property into the dream home that fits into their future and family needs. There is a lot to look at before taking on a big project, from assessing your goals and finances to planning ahead to consider your every need and want, no matter how big or small.</p>
<p>Here are the things to consider before taking on your next big home renovation project:</p>
<h2>Assess your goals and finances</h2>
<p><strong>Assess your goals</strong> for the project and research examples of what you envision. The questions to ask yourself before moving forward should be: <em>Are you expanding? Updating? Building equity and curb appeal for a future sale? Is the timing right? - for you to devote time and for you to take on debt?</em></p>
<p>Another important consideration is how much of the project you will do yourself versus how much you will rely on hiring contractors. Contractors bring on an additional expense, however, ensuring that things are done correctly without the risk of taking on more work than you are comfortable, or qualified to complete yourself, could end up saving you money in the long run. </p>
<p>You will also want to closely <strong>assess your financial situation</strong> and create a realistic budget, ensuring that the total overall expense of the project is something that comfortably fits into your financial picture. </p>
<h2>
Plan your design
</h2>
<p>Go through your design plans and carefully and thoughtfully choose those items that are must haves, as well as those items that will add benefit as your family grows (extra bedrooms) and you consider your personal longevity in the home (accessibility).</p>
<p>Put items you’d like to have on a wish list (i.e. gourmet kitchen, expensive finishes), and do some research on cost. If you are hiring a contractor, this list will give you some idea of the expense of those items and knowledge as to whether or not they will fit into the budget you completed during your preliminary financial review. Being informed and aware of associated costs will help you recognize if you’re getting a fair deal.</p>44Emotions Aside, How to Choose the Right Homehttps://www.washtrust.com/Wash-Trust-Mortgage/Blog/PostId/43/emotions-aside-how-to-choose-the-right-homeBuying a HomeThu, 26 Oct 2017 17:56:45 GMT<p><img alt="" class="imageright" src="/Portals/0/Uploads/Images/bigstock-African-American-family-celebr-14087630.jpg" />When buying a home, it is easy to get caught up in emotions. You fall in love with the new kitchen or giant yard, but the largest purchase for most people requires some objective consideration. The best way to determine if a house has the potential to be your dream home is to visually apply your daily life to it.</p>
<h2>Just another day</h2>
<p>Picture yourself living in the home on a typical day in your life.</p>
<p><strong>Everyday living:</strong> Where do you prepare and eat meals? Is there space for everyone to gather together? How about apart? Do you need an area for a hobby or for large holiday gatherings? Where do you pay your bills and file important documents? If you have school age children, where will they do their homework?</p>
<p><strong>Entertainment:</strong> If you entertain, do you typically invite a large group or prefer more intimate gatherings? Where will you set up your television, sound system and computer? Is special wiring required? Do you have a hobby that requires separate space? Do one or more family members take a daily run or use exercise equipment indoors? If so, where would these things take place?</p>
<p><strong>Maintenance: </strong>What will require additional time or money for maintenance? Can you clean the house on your own or will you need to employ a cleaning service? Are there carpets that will need regular cleaning? What about the heating and/or cooling systems? Will you have to paint the exterior or does it have siding? Is there a pool? Does the yard require lawn maintenance?</p>
<p><strong>Outside:</strong> If you like to spend time outdoors is there space for eating, entertaining or just relaxing? Is there a patio? What is the sun exposure? Are there trees to shade the house in the summer? Are they well maintained to allow light and air to circulate? What will autumn raking entail? How about winter shoveling? How much maintenance will be required?</p>
<h2>Household tasks &amp; local activities</h2>
<p>Once you determine a house is ideal for your family's way of living, think about where you need to go when you pull out of the driveway.</p>
<p>Are there a grocery and hardware store, library, farmers' market, or other retailers and service providers you and your family use regularly near this home? If your children are currently enrolled in sports and activities, can they continue or will you have to find new ones? Are there families nearby to carpool with? Will children have to change schools?</p>
<h2>Making your decision</h2>
<p>Create a check list of things that matter to you and rate each home you're considering by these criteria. It will be easier to keep your emotions in check using this type of unbiased tool.</p>
<p>Finally, the object of your desire may look different after you step away. Take these tips into consideration and be sure to sleep on it before making a commitment.</p>43Do's and Don'ts of the Mortgage Processhttps://www.washtrust.com/Wash-Trust-Mortgage/Blog/PostId/41/dos-and-donts-of-the-mortgage-processGeneralThu, 28 Sep 2017 17:13:13 GMT<p><img alt="" src="/Portals/0/Uploads/Images/Mortgage-Center/Silver-House-Key-Lying-On-A-Counter.jpg" class="imageright" />Preparation is key to navigating today's housing market. The home loan application process begins with determining what you can realistically afford, gathering the necessary documents as outlined by your lender and familiarizing yourself with the fundamentals of the home loan process, interest rates, loan terms and additional fees associated with buying a home.</p>
<p>But once you’ve begun the mortgage process, what steps can you take to keep the process running smoothly and on track towards your closing? * Here are a few do's and don'ts to remember once you've begun the mortgage process...</p>
<h2>Do's</h2>
<ul>
<li>Keep paying all of your bills on time, including your current housing expenses, credit cards, loans, and all other monthly obligations. </li>
<li>Let your Loan Officer know immediately if you expect anything to happen with your current employment status (promotion/demotion, job loss, change in income, etc.). </li>
<li>Save your money for closing. Notify your Loan Officer if you plan on receiving any gift funds. </li>
<li>Line up your homeowner's insurance policy. Here at Washington Trust, an insurance binder is required before closing. </li>
<li>Notify your Loan Officer about any large deposits, outside of your normal monthly income.</li>
</ul>
<h2>Don'ts</h2>
<ul>
<li>Don't make any major purchases until after your closing (car, furniture, appliances, etc.). </li>
<li>Don't open or increase any credit, including credit cards, loans, or any other lines of credit.</li>
<li>Avoid making unnecessary transfer between accounts without receiving the appropriate documentation required for your loan.</li>
<li>Don't start any home improvement projects.</li>
<li>Don't change your job or become self-employed without first inquiring about the impact the change may have on your loan.</li>
</ul>
<p>*Varying factors may delay closing.</p>
<hr />
<p class="smalltext">The opinions expressed in this newsletter are those of the author and may not reflect those of Washington Trust. The information in this report has been obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. Any opinions expressed herein are subject to change at any time without notice. Any person relying upon this information shall be solely responsible for the consequences of such reliance. Performance is historical and does not guarantee future results.</p>41